First Time Landlord Surprises

There is no teacher like experience.  To truly understand anything in life, you just have to jump in and do it.  Being a landlord is no exception.  Jumping in however always leads to things you were not expecting, things that surprise or perhaps even shock you.  What surprised me when I jumped into landlording?  Here are five first time landlord surprises that opened my eyes.

1. People Are Not As Put Together As You Think – Outward appearances are very deceiving and once you become a real estate investor and a landlord, the curtain that people live behind often gets blown away. As an investor or landlord, you see the credit reports, the empty vodka bottles, the clutter, filth and the chaos.  Disorder in other’s lives is much more common than you think it is.  It is often the reason that real estate deals can be made.  Get ready for it.
2. Repairs Never Stop – Before I became a landlord, I rented apartments; I owned a house and a car; I had appliances and yes things broke some of the time. But it sure seems that the breakage ramped up when I got on this side of things.  I can remember being incensed that every time I turned around something else was broken and that I would have to spend more money.  I’ve gotten over than feeling.  Things never stop breaking in this business and your tenants are just not going to care for things as well as you might (see number 1 above).  The experts say to figure on ten percent of gross rents going towards repairs.  But it sure seems like it is a lot more sometimes.
3. Deceit Is Very Prevalent – People lie. I knew that before I became a real estate investor but I did not realize how much.  Once that curtain is pulled away you will see how much the truth is stretched.  Tenants, property owners, realtors, contractors and government officials all lie.  Not all of them all the time, but enough that I was surprised.  At first I was naive enough to often believe the lies. Now, I’ve been in the business to long and have gotten pretty good at calling people out.
4.  A Lot Of Strong Will Is Needed – As investors and landlords, we want to keep the money flowing in, keep our properties in good shape and keep the new deals coming.  All of that takes a lot more effort and force of will than anyone ever told me it would.  It is simply amazing how people will not and do not want to do what they are supposed to do or say they will do.
5. You Will Be Viewed With Suspicion – This one really surprised me. Sure I expected tenants and other property owners to be somewhat cautious, but almost everyone I tell that I am a real estate investor and landlord seems to view me with instant suspicion.  I can see it in their eyes.  Not a lot, but just a hint.  I have no idea what everyone is so suspicious about or where this suspicion comes from, but this is perhaps one of the most surprising things about becoming an investor and it continues to this day.

Should these surprises keep you from real estate investing?  No I do not think so.  They are just challenges that need to be faced as with anything in life.  Hopefully now you will not be as surprised as I was as you go forward in your investing career.

What surprised you about real estate investing?  What were you not expecting?  Do you agree with my surprises?  Let me know with your comments.